The second hand smartphone market will hit £11.7bn in the coming year, the latest predictions by Deloitte have revealed.
Conducted by the technology, media and telecommunications (TMT) arm of the business advisory firm, the report into 2016 trends has highlighted the growing value of used mobile devices.
Findings showed that in the UK the average price of a used handset has increased from £20.8 in 2007 to £114.6 in 2013.
Second hand devices have grown in popularity in the UK with mobile phone recycler Redeem recently describing the market to Mobile as ‘one of the most advanced in the world’. With a number of networks also getting involved, most notably O2 Recycle and Three Trade In, Deloitte believes that the value of pre-owned mobile phones will be twice that for wearables.
Ed Marsden, partner and telecommunications lead at Deloitte, commented: ‘The second life of the smartphone is an increasingly important market in the mobile industry.
‘There is an innate consumer desire to upgrade in order to have the most personal and useful devices. Savvy teenagers may urge their parents to upgrade their handset in the hope that they would in turn benefit from an upgraded hand-me-down. The growth of the second-hand smartphone market presents huge opportunities for the sector.’
A tenfold increase in data usage will also see an uplift in voice of WiFi (VoWiFi) and voice over LTE (VoLTE) services, Deloitte’s 2016 report has revealed. The firm predicts that the close of 2016 will see ‘100 carriers worldwide offer at least one pack-based voice service’ as consumers opt for over-the-top video, messaging and voice services.
The last year has seen a number of networks offer a VoWiFi service, which switches signal between the network and the users WiFi connection depending on which is strongest. EE and Vodafone were the latest to launch this feature, taking a hardware orientated approach by using technology integrated into the mobile device.
This is different to O2’s Tu Go and Three’s InTouch proposition, both of which use a dedicated application to provide WiFi Calling.